Surge in values pushes up commerical property returns

The latest figures from the Property Council of New Zealand's Investment Performance Index survey show commercial property investors had received a potential average return of 14.04 per cent in the year to June 2004, well up on 10.8 per cent the year before.

Though the income returns from commercial properties remained largely the same, it was capital gains that pushed up returns, survey showed.

The investment performance index is made up from information from analysis of 273 properties with a combined value of more than $4.5 billion.

Council research manager Andrew Downing said the capital appreciation was welcome news after the fall of commercial property values from late 1998 to early 2003.

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